Anchorage Digital has partnered with State Street Investment Management as a seed investor to launch a stablecoin-focused money market fund targeting institutional investors. The fund follows a GENIUS Act-aligned framework and sets out how stablecoin reserves can be managed under traditional financial standards. It comes as institutions look for regulated ways to handle growing digital asset exposure.
The firm said in an announcement that the new product, the State Street Federal Stablecoin Reserves Money Market Fund, offers a structured approach to stablecoin reserve management. It connects crypto-native stablecoin systems with established cash market practices. The move reflects growing demand from issuers and institutions for compliant infrastructure as stablecoin adoption continues to expand.
Stablecoin reserves move into regulated finance
Anchorage Digital said the fund addresses how stablecoin reserves are managed across the industry. In the past, issuers used different and often inconsistent reserve structures. However, the GENIUS Act now provides a clearer legal framework for oversight in the United States.
The fund focuses on principal preservation, liquidity, and institutional stability. It also mirrors traditional money market structures to make reserve management more familiar to institutions. Anchorage CEO and Co-Founder Nathan McCauley said, “Institutions are increasingly turning to stablecoins as a new form of financial infrastructure, but they expect the same standards that exist across traditional markets. That starts with how reserves are managed.”
State Street brings long experience in cash management for large institutional clients. Additionally, it manages liquidity strategies across global markets. Kim Hochfeld, Global Head of Cash and Digital Assets for State Street Investment Management, said, “With the GENIUS Act now passed through Congress, a clear framework has been established for how stablecoin reserves can be invested. State Street Investment Management’s conservative, battle-tested approach to managing cash is centered around principal preservation, liquidity and income.”
Stablecoin growth drives institutional shift
Stablecoin reserves are estimated at $300 billion, and it is expected that they will continue growing as organizations adopt them for payments, settlement activities, and treasury management purposes.
Additionally, the GENIUS Act has provided regulatory clarity for the regulation of stablecoins in the United States. This development has led to the greater involvement of banks and asset managers in the industry. Organizations have turned their attention towards reliable counterparts and financial instruments for digital assets management.
This is the first time a GENIUS Act-ready fund has been paired with federal crypto-native banking rails. It gives issuers the principal preservation and institutional-grade liquidity they have been waiting for.
The developments show traditional finance and blockchain systems moving closer together. However, Anchorage Digital and State Street both emphasize compliance and risk controls as stablecoin use grows among institutions. They also stress that regulatory alignment remains central as more firms enter the market.
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